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DETERMINANTS OF GREEN PURCHASE INTENTION IN NIGERIA: THE

MEDIATING ROLE OF PERCEIVED BEHAVIOURAL CONTROL

ENVIRONMENTAL CONSCIOUSNESS AND GREEN TRUST

VICTORIA MASI HARUNA KARATU

DOCTOR OF PHILOSOPHY

UNIVERSITI UTARA MALAYSIA

NOVEMBER 2015

i

DETERMINANTS OF GREEN PURCHASE INTENTION IN NIGERIA: THE

MEDIATING ROLE OF PERCEIVED BEHAVIOURAL CONTROL

ENVIRONMENTAL CONSCIOUSNESS AND GREEN TRUST

VICTORIA MASI HARUNA KARATU

Thesis Submitted to

Othman Yeop Abdullah Graduate School of Business,

Universiti Utara Malaysia.

In Fulfilment of the Requirements for the Degree of Doctor of Philosophy

ii

CETIFICATION OF THESIS WORK

iv

PERMISSION TO USE

In presenting this thesis in fulfilment of the requirement for a Post Graduate Degree

from the Universiti Utara Malaysia (UUM), I further agree that the Library of this

Universiti may make freely available for inspection. I further agree that permission

for copying this thesis in any manner, in whole or in part, for scholarly purposes may

be granted by my supervisor(s) or in their absence, by the Dean of Othman Yeop

Abdullah Graduate School of Business where I did my thesis. It is understood that

any copying or publication or use of this thesis or part of it for financial gain shall be

given to me and the UUM in any scholarly use which may be of any material in my

thesis.

Request for permission to copy or to make other use of materials in this thesis in

whole or in part should be addressed to:

Dean of Othman of Yeop Abdullah Graduate School of Business

Universiti Utara Malaysia

06010 UUM Sintok

Kedah Darul Aman

v

ABSTRACT

Green purchase is a widely known phenomenon especially in developed countries

and in some developing nations. However, this seemingly known practice is still

slow in gathering momentum in places like Nigeria due to the low level of its

awareness. The cogent rationale for this study was to examine the determinants of

green purchase intention and the mediating effects of perceived behavioural control

(PBC), environmental consciousness and green trust between the suggested

determinants and green purchase intention using the theory of planned behavior

(TPB). The framework was composed of nine (9) variables. The instrument was

adopted from previous studies and had a total of fifty-four (54) items measured using

the seven-point Likert scale. 754 respondents from three universities were selected

and 502 responded indicating a 67% response rate. The Structural Equation

Modeling (SEM) was used to examine the causal and mediating relationships. The

finding showed that perceived behavioural control and environmental consciousness

had a significant direct influence on green purchase intention. Also, the significant

determinants of environmental consciousness were government regulations and

perceived green knowledge. Green perceived value and green availability

significantly predicted green trust. Significant determinants of PBC were green trust,

green price sensitivity and green perceived value. Mediation results indicated that

PBC mediated between trust and intention while environmental consciousness

mediated between green knowledge, government regulations and intention. The TPB

was found to be a robust underpinning theory in explaining the determinants of green

purchase intention in Nigeria since the model achieved the goodness of fit by

meeting the entire criterion. The implication of this study is that the finding provides

valuable insight for the government to formulate stringent regulations to deal with

environmental issues and strategic planning on how to market green products in

Nigeria by the practitioners.

Keywords: green purchase intention, structural equation modeling, Nigeria, green

products, theory of planned behaviour.

vi

ABSTRAK

“Pembelian hijau” merupakan satu fenomena yang dikenali ramai terutamanya di

negara-negara maju dan beberapa buah negara membangun. Walau bagaimanapun,

amalan ini seolah-olah masih perlahan untuk mengumpul momentum di tempat

seperti Nigeria kerana tahap kesedarannya yang rendah. Rasional yang meyakinkan

bagi menjalankan kajian ini adalah untuk mengkaji penentuan niat pembelian hijau

dan kesan pengantara kawalan tingkah laku anggapan(PBC), kesedaran alam sekitar

dan keyakinan hijau (green trust) di antara penentu-penentu yang dicadangkan dan

niat pembelian hijau dengan menggunakan teori tingkah laku terancang (TPB).

Rangka kerja kajian terdiri daripada sembilan (9) pemboleh ubah. Instrumen diambil

daripada kajian sebelumnya dan mempunyai sebanyak lima puluh empat (54) item

yang diukur menggunakan skala tujuh mata Likert. 754 responden dari tiga buah

universiti telah dipilih dan 502 maklum balas yang diterima menunjukkan kadar

tindak balas sebanyak 67%. Permodelan Persamaan Berstruktur (SEM) telah

digunakan untuk mengkaji penyebab dan pengantara dalam hubungan. Dapatan

kajian menunjukkan bahawa kawalan tanggapan tingkah laku dan kesedaran alam

sekitar mempunyai pengaruh langsung yang signifikan terhadap niat pembelian

hijau. Penentu yang signifikan terhadap kesedaran alam sekitar adalah peraturan-

peraturan kerajaan dan tanggapan pengetahuan hijau. Tanggapan nilai hijau dan

ketersediaan hijau secara signifikan meramalkan keyakinan hijau. Penentu penting

PBC adalah keyakinan hijau, sensitiviti harga hijau dan tanggapan nilai hijau.

Keputusan pengantaraan menunjukkan bahawa PBC menjadi pengantara bagi

keyakinan dan niat manakala kesedaran alam sekitar menjadi pengantara bagi

pengetahuan hijau, peraturan kerajaan dan niat. TPB didapati menjadi teori asas yang

kukuh dalam menerangkan penentuan niat pembelian hijau di Nigeria

memandangkan model tersebut mencapai kebaikan suai dengan memenuhi

keseluruhan kriteria. Implikasi bagi kajian ini adalah dapatan kajian memberikan

pandangan yang berharga bagi kerajaan untuk menggubal peraturan-peraturan yang

ketat bagi menangani isu-isu alam sekitar dan menyediakan pandangan kepada

pengamal untuk membuat perancangan strategik mengenai cara untuk memasarkan

produk-produk hijau di Nigeria.

Kata kunci: niat pembelian hijau, pemodelan persamaan berstruktur, Nigeria,

produk hijau, teori tingkah laku terancang

vii

ACKNOWLEDGMENTS

First and foremost, I wish to express my gratitude to God the Father, God the Son

and God the Holy Spirit who gave me wisdom, health and knowledge to carry out

this research. Praise and Honour be unto Him in Jesus most precious name.

I wish to sincerely express my immense gratitude to my supervisor, Professor (Dr)

Nik Kamariah Nik Mat for her invaluable and untiring supervisory role in the course

of writing this thesis. Your wealth of experience in guiding the writing of this piece

of work brought it to this successful end; words are not enough to express how I

appreciate your support and encouragement. Indeed it has been a blessing working

with you. Thank you.

It is pertinent to appreciate the entire viva and proposal defence committee in the

persons of Prof. (Dr) Mahadzirah Mohamad, Professor Madya (Dr) Norazila Mohd

Noor and Prof. (Dr) Abdul Razak and Dr Ku Awanis Ishak for their immense

insightful contributions to this work.

Also, I am indebted to my husband and children for their understanding, prayers,

patience and perseverance which really gave me the moral support to forge ahead in

the pursuance of this PhD degree.

Furthermore, I also register my thanks to the management of Waziri Umaru Federal

Polytechnic and the Management of TETFUND for their support and sponsorship for

this study.

Lastly, my thanks go to all my friends and those who directly or in any way

contributed to the successful completion of my PhD journey. I pray that God reward

you all.

viii

PUBLICATIONS FROM THIS STUDY

Haruna-Karatu, V. M., & Nik-Mat, N. K. (2015). Predictors of green purchase

intention Nigeria: The mediating role of environmental consciousness.

American Journal of Economics, 5(2), 291-302.

Haruna-Karatu, V. M., & Nik-Mat, N. K. (2015). The determinants of green purchase

intention in Nigeria: Mediating rffect of perceived behavioral control.

International Scholarly and Scientific Research & Innovation

waset.org.17(4), 2114-2123.

Haruna-Karatu, V. M., & Nik-Mat, N. K. (2015). The mediating effects of green trust

and perceived behavioural control on the direct determinants of intention to

purchase green products in Nigeria. Mediterranean Journal of Social

Sciences, 6 (4), 2039-9340.(Scopus)

Haruna-Karatu, V. M., & Nik-Mat, N. K. (2014). A new model of green purchase

intention and its derivatives: Confirmatory factor analysis validation of

constructs Information Management and Business Review, 6(5), 261 268,

Oct 2014 (ISSN) 2220-3796.

Haruna-Karatu, V. M., & Nik-Mat, N. K. (2014). Modeling green purchase

behvaiour in Nigeria: A conceptual proposition management,3(7),480-483

DOI:10.5923/j.mm.20130307.Published online http://journal

.sapub.org/mm Scientific & Academic Publishing.

Haruna-Karatu, V. M., & Nik-Mat, N. K. (2015). Determinants of green purchase

intention: Mediating role of perceived green value. Proceedings of

International Conference on Accounting Studies, (ICAS 2015). August 17th

-

20th

. Johor Bahru.

http://journal/

http://journal/

ix

TABLE OF CONTENTS

Title Page

TITLE PAGE i

CERTIFICATION OF THESIS WORK ii

PERMISSION TO USE iv

ABSTRACT v

ABSTRAK vi

ACKNOWLEDGMENTS vii

TABLE OF CONTENTS ix

LIST OF TABLES xxiii

LIST OF FIGURES xxvi

LIST OF ABBREVIATIONS xxviii

LIST OF APPENDIX xxix

CHAPTER ONE: INTRODUCTION 1

1.0 Preambles 1

1.1 Background of the Study 1

1.2 Problem Statement 4

1.2.1 Low Level of Green Purchase Intention 4

1.2.2 Weak Enforcement of Government Regulation 8

1.2.3 Low level of Environmental Consciousness 10

1.2.4 Lack of Trust on Green Products 12

1.2.5 Limited Studies on the Mediating Effects of Perceived Behavioural

Control, Environmental Consciousness and Green Trust in Green 14

1.3 Research Questions 16

1.5 Research Objectives 17

1.6 Significance of the Research 19

x

1.6.1 Government 20

1.6.3 Academicians 21

1.6.4 Consumers 21

1.6.5 Methodology 22

1.7 Scope of the Study 22

1.8 Chapter outline of the Study 23

1.9 Summary of Chapter 25

CHAPTER TWO: LITERATURE REVIEW 27

2.0 Preambles 27

2.1 Green Purchase Intention (GPI) 27

2.2 Green Product 31

2.3 Green Marketing 34

2.4 Underpinning Theory 37

2.4.2 Constructs of TPB 39

2.4.2.1 Attitude 39

2.4.2.2 Attitudinal Belief 40

2.4.2.3 Subjective Norms 40

2.4.2.4 Normative belief 41

2.4.2.5 Perceived Behavioural Control 41

2.4.2.6 Control belief 43

2.4.3 Theory of Planned Behaviour Applied In Green Purchase Intention

Studies 43

2.4.3.1 Justification for adopting Theory of Planned Behaviour 47

2.5 Simple Green Purchase Intention Models 48

2.6 Complex Green Purchase Intention Models 58

xi

2.6.1 Examples of Complex Models in Green Purchase Intention Studies 60

2.7 Direct Determinants of Green Purchase Intention 69

2.8 Review of Past Studies on Determinants of Green Purchase Intention 76

2.8.1 Perceived Behavioural Control and Green Purchase Intention 77

2.8.2 Environmental Consciousness and Green Purchase Intention 79

2.8.3 Green Trust and Green Purchase Intention 84

2.8.4 Perceived Green Knowledge and Green Purchase Intention 87

2.8.5 Government Regulations and Green Purchase Intention 92

2.8.6 Green Perceived Value and Green Purchase Intention 94

2.8.7 Green Price Sensitivity and Green Purchase Intention 96

2.8.8 Green Availability and Green Purchase Intention 100

2.9 Other Direct Determinants of Green Purchase Intention 102

2.10 Determinants of Perceived Behavioural Control 103

2.10.1 Perceived Green Knowledge and Perceived Behavioural Control 104

2.10.2 Government Regulation and Perceived Behavioural Control 104

2.10.3 Green Trust and Perceived Behavioural Control 105

2.10.4 Green Price Sensitivity and Perceived Behavioural Control 105

2.10.5 Perceived Green Value and Perceived Behavioural Control 106

2.10.6 Green Availability and Perceived Behavioural Control 106

2.11 Determinants of Environmental Consciousness 108

2.11.1 Perceived Green Knowledge and Environmental Consciousness 108

2.11.2 Government Regulations and Environmental Consciousness 108

2.11.3 Green Perceived Value and Environmental Consciousness 109

2.12 Determinants of Green Trust 110

2.12.1 Green Perceived Value and Green Trust 110

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2.12.2 Green Price Sensitivity and Green Trust 111

2.12.3 Green Availability and Green Trust 112

2.13 Mediating Variables 113

2.13.1 The Mediating Role of Perceived Behavioural Control, Environmental

Consciousness and Green Trust 116

2.13.1.1 Perceived Behavioural Control as a Mediator 116

2.13.1.2 Environmental Consciousness as a Mediator 118

2.13.1.3 Green Trust as a Mediator 119


CHAPTER THREE: RESEARCH FRAMEWORK AND DEVELOPMENT

OF RESEARCH HYPOTHESES 123

3.0 Preambles 123

3.1 The Research Framework 123

3.2 Research Hypotheses 127

3.2.1 Perceived Behavioural Control and Green Purchase Intention 127

3.2.2 Environmental Consciousness and Green Purchase Intention 128

3.2.3 Green Trust and Green Purchase Intention 128

3.2.4 Perceived Green Knowledge and Green Purchase Intention 129

3.2.5 Government Regulation and Green Purchase Intention 130

3.2.6 Green Perceived Value and Green Purchase Intention 130

3.2.7 Green Price Sensitivity and Green Purchase Intention 131

3.2.8 Green Availability and Green Purchase Intention 132

3.2.9 Perceived Green Knowledge and Perceived behavioural control 133

3.2.10 Government Regulations and Perceived Behavioural Control 134

3.2.11 Government Regulations and Environmental Consciousness 135

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3.2.12 Green Perceived Value and Environmental Consciousness 135

3.2.13 Green Perceived Value and Green Trust 136

3.2.14 Green Price Sensitivity and Green Trust 137

3.2.15 Green Availability and Green Trust 137

3.2.16 Green Trust and Perceived Behavioural Control 138

3.2.17 Green Price Sensitivity and Perceived Behavioural Control 138

3.2.18 Green Perceived Value and Perceived Behvioural Control 139

3.2.19 Green Availability and Perceived Behavioural Control 140

3.2.20 Perceived Green Knowledge and Environmental Consciousness 140

3.2.21 Perceived Behavioural Control mediates between Perceived Green

Knowledge and Green Purchase Intention 141

3.2.22 Perceived Behavioural Control mediates between Government

Regulations and Purchase Intention 142

3.2.23 Perceived Behavioural Control mediates between Green Price

Sensitivity and Green Purchase Intention 142

3.2.24 Perceived Behavioural Control mediates between Green Availability

and Green Purchase Intention 143

3.2.25 Perceived Behavioural Control mediates the relationship between

Green Trust and Green Purchase Intention 144

3.2.26 Environmental Consciousness mediates the relationship between

Government Regulation and Green Purchase Intention 144

3.2.27 Environmental Consciousness mediates the relationship between

Perceived Value and Green Purchase Intention 145

3.2.28 Environmental Consciousness mediates between Perceived Green


xiv

3.2.29 Green Perceived Value mediates Green Trust and Green Purchase

Intention 146

3.2.30 Green Trust mediates between Green Price Sensitivity and Green

Purchase Intention 146

3.2.31 Green Trust mediates between Green Availability and Green Purchase

Intention 147

3.2.32 Green Trust mediates the relationship between Green Price Sensitivity

and Perceived Behavioural Control 148

3.2.33 Green Trust mediates the relationship between Green Availability and

Perceived Behavioural Control 148

3.2.34 Green Trust mediates the relationship between Green Perceived Value

and Perceived Behavioural Control 149

3.4 Operational Definition 149


CHAPTER FOUR: RESEARCH METHODOLOGY 152

4.0 Preamble 152

4.1 Research Design 152

4.2 Sample Design of the Research 154

4.3 Population Frame 154

4.4 Sampling Method 155

4.4.1 Sampling Frame 156

4.4.2 Sample Size Determination 157

4.5 Data Collection Procedure 159

4.5.1 Pilot Data Collection 159

4.5.2 Actual Data Collection Procedure 160

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4. 6 Questionnaire Design 161

4.7 Measurement of Constructs 162

4 .7.1 Green Purchase Intention (GPI) 164

4.7.2 Perceived Behavioural Control (PBCL) 165

4.7.3 Environmental Consciousness (ECC) 165

4.7.4 Green Trust (GTST) 166

4.7.5 Perceived Green Knowledge (PGKL) 167

4.7.6 Green Perceived Value (GPV) 167

4.7.7 Green Price Sensitivity (GPST) 168

4.7.8 Government Regulations (GRN) 168

4.7.9 Green Availability (GAV) 169

4.8 Pre-Test of Questionnaires 170

4.9 Exploratory Factor Analysis 171

4.9.1 Factor Analysis for Independent Variable of Pilot Study 172

4.9.2 Factor Analysis for Dependent Variable 172

4.9.3 Bartlett’s Test and Kaiser-Meyer-Olkin (KMO) 173

4.10 Response Bias 173

4.11 Demographic Profile 174

4.12 Data Screening 174

4.12.1 Missing Data 175

4.12.2 Detecting Outliers 176

4.12.3 Normality Test 177

4.12.4 Descriptive Statistics of Data 178

4.12.5 Test of Linearity 179

4.12.6 Homoscedasticity 180

xvi

4.12.7 Multicollinearity 180

4.13 Test of Reliability 181

4.13.1 Reliability (Cronbach Alpha) 181

4.13.2 Composite Reliability 183

4.14 Test of Validity 183

4.14.1 Content (face) Validity 184

4.14.2 Construct Validity 185

4.14.3 Convergent validity 185

4.15 Discriminant Validity 186

4.16 Method of Data Analysis 187

4.16.1 Structural Equation Modeling (SEM) 187

4.16.2 The Rationale for using Structural Equation Modeling 188

4.16.3 Types of Error In Structural Equation Modeling 192

4.16.4 Types of Variables used in Structural Equation Modeling 193

4.16.5 Steps in Structural Equation Modeling Analysis 194

4.16.5.1 Model Conceptualizing 194

4.16.5.2 Identification of Parameters 195

4.16.5.3 Model Specification 196

4.16.5.4 Estimation of Model 198

4.16.5.5 Model modification 199

4.16.5.6 Evaluation of Parameters 200

4.17 Estimation of Model Fit 202

4.17. 1 Absolute Fit Indices 203

4.17.2 Incremental Fit Index 203

4.17.3 Parsimony Fit Indices 203

xvii

4.18 Benchmark for Goodness of Fit Indices 204

4.19 Testing of Hypotheses 205

4.19.1 Direct Relationship (Effects) 205

4.19.2 Indirect Relationships (Effects) 206

4.19.2.1 Bootstrapping 206


CHAPTER FIVE: FINDINGS 208

5.0 Preambles 208

5.1 Response Rate 209

5. 2 Screening Question 210

5.2.1 Discussion on the Screening Question 210

5.3 Demographic Profile of Respondents 210

5.4 Descriptive Statistics Indicators 212

5.5 Screening of Data 212

5.5.1 Missing Data Detection 213

5.5.2 Response Bias 213

5.5.3 Outliers 214

5.5.4 Normality 215

5.4.5 Histogram 216

5.4.6 Linearity 217

5.4.7 Homoscedacity 218

5.4.8 Multicollinearity 219

5.5 Test for Validity of Constructs 220

5.5.1 Construct Validity 220

5.5.1.1 Cronbach Alpha 220

xviii

5.5.1.2 Composite Reliability 221

5.5.2 Convergent Validity 222

5.5.2.1 Exploratory Factor Analysis 222

5.5.2.2 Confirmatory Factor Analysis (CFA) 223

5.5.3 Discriminant Validity 230

5.5.3.1 Correlation 230

5.5.3.2 Average Variance Extracted 232

5.6 Hypothesized Structural Model 234

5.7 Generated Model 235

5.7.1 Goodness of Fit Indices 236

5.8 Results of Direct Relationship 237

5.8.1 Summary of findings on Direct Relationship from Generated Model 244

5.9 Mediating Effects of Perceived Behavioural Control, Environmental

Consciousness and Green Trust 245

5.9.2 The mediating Effect of Environmental Consciousness 247

5.10 Squared Multiple Correlations (SMC) 249


CHAPTER SIX: DISCUSSION AND CONCLUSION 254

6.0 Preambles 254

6.1 Recapitulation of the Research Objectives 254

6.2 Objective One: Discusses the Direct Determinants of Green Purchase

Intention in Nigeria 256

6.2.1 Significant Determinants of Green Purchase Intention in Nigeria 256

6.2.1.1 Perceived behavioural Control and Green Purchase Intention 256

6.2.1.2 Environmental consciousness and Green Purchase Intention 257

xix

6.2.2. Insignificant Determinants of Green Purchase Intention in Nigeria 258

6.2.2.1 Green Trust and Green Purchase Intention 258

6.2.2.2 Perceived Green Knowledge and Green Purchase Intention 259

6.2.2.3 Government Regulation and Green Purchase Intention 259

6.2.2.4 Green Perceived Value and Green Purchase Intention 260

6.2.2.5 Green Price Sensitivity and Green Purchase Intention 261

6.2.2.6 Green Availability and Green Purchase Intention 261

6.3 Objective Two: Discussion on the Determinants of Perceived 262

Behavioural Control 262

6.3.1 Significant Determinants of Perceived Behavioural Control among 262

Nigerian Consumers 262

6.3.1.1 Green Trust and Perceived Behavioural Control 262

6.3.1.2 Green Price Sensitivity and Perceived Behavioural Control 263

6.3.1.3 Green Perceived Value and Perceived Behavioural Control 263

6.3.2.1 Perceived Green Knowledge and Perceived Behavioural Control

264

6.3.1.2 Government Regulations and Perceived Behavioural Control 265

6.4 Objective Three: Discussion on Determinants of Environmental 266

Consciousness in Nigeria 266

6.4.1 Significant Determinant of Environmental Consciousness 266

6.4.1.1 Perceived Green Knowledge and Environmental consciousness 266

6.4.1.2 Government Regulations and Environmental Consciousness 267

6.4.1.3 Green Perceived Value and Environmental Consciousness 268

6.5 Objective Four: Discussion on the Determinants of Green Trust among

Nigerian Consumers 269

xx

6.5.1 Significant Determinants of Green Trust among Nigerian Consumers269

6.5.1.1 Green Perceived Value and Green Trust 269

6.5.1.2 Green Availability and Green Trust 270

6.5.2 Insignificant Determinants of Green Trust 270

6.5.2.1 Green Price Sensitivity and Green Trust 270

6.6 Objective Five: Discussion on the Mediating Effects of Perceived

Behavioural Control, Environmental Consciousness and Green Trust 271

6.6.1 Significant Mediating Effects 271

6.6.1.1 Perceived Behavioural Control Mediates between Green Trust and

Green Purchase Intention 271

6.6.1.2 Environmental Consciousness mediates between Perceived Green


6.6.2.3 Environmental Consciousness mediates between Government 273

Regulations and Green Purchase Intention 273

6.6.2 Insignificant Mediating Effects of Perceived Behavioural Control,

Environmental Consciousness and Green Trust. 274

6.6.2.1 Perceived Behavioural Control Mediates between Green Price


6.6.2.2 Perceived Behavioural Control as Mediator between Green

Availability and Green Purchase Intention 274

6.6.2.3 Perceived Behavioural Control mediates between Perceived Green


6.6.2.4 Perceived Behavioural Control mediates between Government

Regulations and Green Purchase Intention 275

6.6.2.5 Environmental Consciousness mediates between Green Perceived

xxi

Value and Green Purchase Intention 276

6.6.2.6 Green Trust mediates between Green Perceived Value and Green


6.6.2.7 Green Trust mediates between Green Availability and Green


6.6.2.8 Green Trust mediates between Green Price Sensitivity and Green


6.6.2.9 Green Trust Mediates between Green Price Sensitivity and


6.6.2.10 Green Trust Mediates between Green Availability and Perceived

Behavioural Control 279

6.6.2.11 Green Trust Mediates between Green Perceived Value and


6.7 Implication of the Study 280

6.8.1 New Contribution 281

6.8.2 Methodological Contribution 282

6.8.3 Contribution to Nigerian Government 283

6.8.3.1 Up Grading Resources 283

6.8.3.2 Create Awareness 284

6.8.3.3 Introduce Stringent Government Regulation 285

6.8.3.4 Encourage Proper Waste Management and Recycling 286

6.8.3.5 Encourage Individual Participation 286

6.8.3.6 Incentives 287

6.8.4 Contribution to Practitioners 288

6.8.4.1 Communicate Environmental Benefits 289

xxii

6.8.4.2 Winning the Consumer’s Heart 290

6.8.4.3 Promotion Strategy 291

6.8.4.4 Variety of Green Products 292

6.9 Limitation of the Study 294

6.11 Suggestions for Future Research 297

6.12 Conclusion of the Study 299

REFERENCES 301

xxiii

List of Tables

Table Page

Table 1.1 Green Purchase Behaviour by Region 7

Table 1.2 Summary of Research Problems, Research Questions and Research

Objectives 19

Table 2.1 Theory of Planned Behaviour Applied in Green Purchase Intention

Studies 46

Table 2.2 Summary of Relationship on the Direct Determinants of Green Purchase

Intention with Findings 71

Table 2.3 Summary of Studies on Perceived Behavioural Control and Green

Intention 79

Table 2.4 Summary of Studies on Environmental Consciousness and Green


Table 2.5 Summary of Studies Showing Relationship between Green Trust and


Table 2.6 Summary of studies showing Relationship between Green Knowledge


Table 2.7 Summary of studies on the relationship between Government Regulations


Table 2.8 Summary of studies showing the Relationship between Perceived Value


Table 2.9 Summary of Studies showing Relationship between Green Price


Table 2.10 Summary of studies showing Relationship between Availability and


xxiv

Table 2.11 Summary of Determinants of Perceived Behavioural Control 107

Table 2.12 Summary of Determinants of Green Trust 112

Table 2.13 Mediating Variables 114

Table 2.14 Mediating Effect of Perceived Behavioural Control 117

Table 2.15 Mediating Effect of Environmental Consciousness 119

Table 2.16 Mediating Effect of Green Trust 120

Table: 3.1 Operational Definitions 149

Table 4.1 Rule of Thumb for Sample Size 157

Table 4.2 Sample Size Distribution of Questionnaire 158

Table 4.3 Summary of Construct, Items and Reliability Values of Pilot study and

Past studies 160

Table 4.4 Green Purchase Intention Construct (GPI) 165

Table 4.5 Perceived Behavioural Control Construct (PBCL) 165

Table 4 .6 Environmental Consciousness Construct (ECC) 166

Table 4.7 Green Trust Construct (GTST) 166

Table 4.8 Perceived Green Knowledge (PGKL) 167

Table 4.9 Green Perceived Value Construct (GPV) 167

Table 4.10 Green Price Sensitivity Construct (GPST) 168

Table 4.11 Government Regulations Construct (GRN) 169

Table 4.12 Green Availability Construct (GAV) 169

Table 4.13 Summary of Measurement Items 170

Table 4.14 Summary of Goodness of Fit Indices and Criterion 205

Table 5.1 Summary of Response Rate 209

Table 5. 2 T- Test to Compare between Knowledgeable and Non-knowledgeable

Respondents 210

xxv

Table 5.3 Summary of Descriptive Statistics Indicators of Variables 212

Table 5.4 Response Bias Test 214

Table 5.5 Residuals Statistics on Mahalanobis Distance 215

Table 5.6 Multicollinearity Test Based on Variance Inflated Factor (VIF) 220

Table 5.7 Reliability of Variables (N=440) 221

Table 5.8 Goodness of Fit Summary of CFA of Individual, Exogenous,

Endogenous and Combined Measurement Model (N=440) 225

Table 5.9 Summary of Factor Loading for EFA and CFA 226

Table 5.10 Correlations among Constructs 229

Table 5.11 Correlation and Correlation Squared Matrix among Constructs 231

Table 5.12 Variance Extracted for Latent Variables 232

Table 5.13 Average Variance Extracted (AVE) Matrix of Constructs 233

Table 5.14 Goodness of Fit of Hypothesized Structural and Generated Model

N=440) 237

Table 5.15 Direct Effects of Generated Model 238

Table 5.16 Mediating Effect of Perceived Behvaioural Control 247

Table 5.17 Mediating Effect of Environmental Consciousness 248

Table 5.18 Mediating Effects of Green Trust 249

Table 5.19 Squared Multiple Correlations for Endogenous Variables 250

Table 5.20 Summary of Hypotheses Results 251

xxvi

List of Figures

Figure Page

Figure 1.1 Chapter Plan of the Study 25

Figure 2.1 Green Products Types 32

Figure 2.2 Stages in Green Marketing History 35

Figure 2.3 Theory of Planned Behaviour 38

Figure 2.4 Purchase Intention (Green): Model 1 50

Figure 2.5 Green Purchase Intention: Model 2 51


Figure 2.7 Intention to Buy Organic Food: Model 4 52






Figure 2.13 Purchase Intention: Model 10 55


Figure 2.15 Consumers’ Purchase Intention (Green): Model 12 56


Figure 2.17 Intention to Purchase Green: Model 14 57

Figure 2.18 Intention Buy Organic Product: Model 15 57


Figure 2.20 Green Consumption Behavioural Intention: Model 17 61


xxvii


Figure 2.23 Intention to Purchase (Green): Model 20 62

Figure 2.24 Green Purchase Intention (Green): Model 21 63


Figure 2.26 Behavioural Intention (Green): Model 23 64





Figure 2.31 Environmentally Savvy Products (Green): Model 28 66

Figure 2.32 Intention to Buy Green: Model 29 67


Figure 2.34 Intentions to Buy Green Mobiles: Model 31 68

Figure2.35 Determinants of Green Trust in previous studies 113

Figure 3.1 Research Framework 126

Figure 5.1 Normality Assumption 217

Figure 5.2 Linearity Assumption 218

Figure 5.3 Homoscedasticity Assumption 219

Figure 5.4 Hypothesized Model 235

Figure 5.5 Generated Model 236

Figure 5. 6 Summary of Findings from Generated Model 245

xxviii

LIST OF ABBREVIATIONS

AMOS Analysis of Moment Structure

AVE Average Variance Extracted

CFA Confirmatory Factor Analysis

CFI Comparative Fit Index

CR= T Critical Ratio (AMOS) T- Value (SPSS)

CR Composite Reliability

CMIN/DF Chi-Square Per Degree of Freedom

VE Variance Extracted

DF Degree of Freedom

EC Environmental Consciousness

EFA Exploratory Factor Analysis

GFI Goodness of Fit Index

GOF Goodness of Fit

GRN Government Regulations

GPV Green Perceived Value

GAV Green Availability

GTS Green Trust

GPST Green Price Sensitivity

GPI Green Purchase Intention

GM Generated Model

MI Modification Indices

P P-value

Β Beta

PBC Perceived Behavioural Control

R2

R Square (SPSS)

RMSEA Root Mean Square Error of Approximation

SIG Significant

SEM Structural Equation Modeling

SMC Squared Multiple Correlation=R2

SPSS Statistical Package for Social Science

TLI Tucker-Lewis Index

TPB Theory of Planned Behaviour

TRA Theory of Reasoned Action

χ2 Chi-Square

PNFI Parsimonious Normed Fit Index

xxix

LIST OF APPENDIX

Appendix A Summary of Direct Determinants of Green Purchase Intention

Appendix B Summary of Direct Determinants of Purchase Intention in Non-

Green

Appendix C Questionnaires Used for Actual Data Collection

Appendix D Exploratory Factor Analysis Result Actual Data

Appendix E Demographic Profile of Respondents

Appendix F Test for Normality of Actual Data

Appendix G Missing Data Output

Appendix H Reliability of Construct for Actual Data

Appendix I Confirmatory Factor Analysis Results for Actual Data

Appendix J Generated Model Output

Appendix K Bootstrapping Out

1

CHAPTER ONE

INTRODUCTION

1.0 Preambles

This chapter introduces the background and the main issues of this study. The issues

are centred on low level of green purchase intention, environmental problems such as

oil spillage, flood, waste pollution, desertification and deforestation which connote

the lack of environmental consciousness and weak government regulation, lack of

trust on green products, low knowledge and awareness towards green products.

Furthermore, it covers the statement of the problems which are the bedrock of this

study; research questions, objectives, significance of the research, justifications,

scope, contributions and the chapter plan.

1.1 Background of the Study

In recent times, concern for the environment has increased steadily across the globe

and has translated into consumers’ awareness which is portrayed in their nutrition,

health and quality of food in terms of purchase and consumption as most of them are

now connecting the dots to their main lifestyle. The demands for green product

became inevitable (Ali & Ahmad, 2012; Chen, 2010; Kalafatis, Polland, East &

Tsogas, 1999; Paco & Raposo, 2009; Rashid, 2009), thus, the birth of green

consumers.

Taking a look at what happens globally, there has been incessant increase in

consumers who are environmentally concerned and this in turn has led to a drastic

growth of green products market (Hunt & Dorfman, 2009). Gupta and Ogden (2009)

The contents of

the thesis is for

internal user

only

301

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